How do you get the monkey off your back you ask? Well it is simple and easy to explain; first and foremost you have to stop spending aka adding more debt. Second thing you have to do is really feel an urge to be free while at the same time get the mindset ready for many months of cutting back with slicing debt here and slicing debt there. I want you to think about that for a second because when all your friends are going out clubbing every other weekend you might have to go every other month for a year or two. It will be hard and your emotions will test the heck out of you. But you can do it, because if a desire is present then anything is possible. Getting out of debt is the initial feeling, but the real underlining urge is to build a great financial foundation. Where you can have surplus cash flow and invest here and there without the worries behind bill paying all bottled up inside.
If you have doubt then you are not ready as the journey will go from tough to tougher every day. I want you to be prepared with the strength of all your ancestors because this stuff is not easy. (Depending how deeply indebted one is)
Debt Freedom Done Right:
Do not add more debt
Feel and desire to be free
Cut back on anything that is not a need
Add up the daily and weekly interest fees for each loan
For the smallest balance loan, pay as much as you possibly can
For the rest of the loans pay the minimum
Pay double the weekly interest fee plus the monthly payment amount (Smallest Balance) (Per Week)
Keep the cycle going, with every loan until you can yell, BE GONE DEBT!
This simple advice can help you achieve great momentum with debt freedom. Why you ask?
- You are paying more than the minimum on the smallest balance loan until it is paid off
- You are paying double the interest fee weekly thus reducing the principle dramatically
- You will see results monthly and will save yourself money with interest payments
- You will see the debt shave off with every balance that is paid off and get one step closer to freedom
The Total Money Makeover: A Proven Plan for Financial Fitness
Comment if you agree with the, debt freedom done right revolution coming soon to a bank near you?
PS: The books above are all debt freedom books from respectable financial gurus. This post is not a review of the books but are offered here as an additional resource for you to use if more information is required.
Rich Uncle EL
Let me add to this excellent post: think you don’t have extra to pay? Bet you have something to sell. Or do surveys or find a part time job. Get creative, at least until you’ve paid off the smallest debt!